Going the Distance: Four Ways to Build a Better Customer Loyalty Program for Your Brand

It’s easy enough for a customer to join your loyalty program, especially when you’re offering an incentive such as discounts. All your customer has to do is give out some basic information, and voila! They’re in the fold, a brand new loyalty member with your company. From there, it’s happily ever after. You offer the perks; they stand solidly by you, bringing you their continued business. Simple. Or is it? In reality, just how many of those customers are act ively participating in your loyalty program? Do you know? Sure, loyalty program memberships are on the rise according to market research company eMarketer, having jumped 25 percent in the space of just two years. However, that figure may be a bit misleading. The truth is that, while loyalty program sign-ups may be more numerous, active participation in such programs is actually in decline. At the time of the study, the average US household had memberships in 29 loyalty programs; yet consumers were only active in 12 of those. That’s just 41 percent. And even that meager figure represents a drop of 2 percentage points per year over each of the preceding four years, according to a study by loyalty-marketing research company COLLOQUY.

When discounts just aren’t enough

So what’s a brand to do? How can you make your loyalty program worth your customer’s while—as well as your own? After all, gaining a new loyalty member doesn’t mean much if your customer isn’t actively participating in your program. Consider this: Does your customer loyalty program offer members anything different from what your competitors are offering? Chances are your program includes discounts. That’s a given. And what customer doesn’t appreciate a good discount? But when every other company out there is providing this staple benefit in comparable amounts, it becomes less and less likely that customers will remain loyal to any one particular brand. Frankly, it’s all too easy for customers to get lost in a sea of loyalty member discounts. They’re everywhere. In fact, just under half of internet users perceive that all rewards programs are alike, according to a 2015 eMarketer survey. The key to success, then, is to differentiate your business from the crowd. If you can offer your customers something unique and valuable beyond the usual discount, chances are they’ll be more likely to stick with your brand. Here’s some inspiration from companies who get it.

Virgin: Reward more purchases with more benefits.

That’s not to say you need to get rid of discounts entirely. In fact, nothing could be further from the truth. Customers still love a good discount. The goal is to be creative in terms of the loyalty perks you offer. Take the Virgin Atlantic Flying Club, for example. As part of its loyalty program, the airline allows members to earn miles and tier points. Members are inducted at the Club Red tier, from which they can move up to Club Silver and then Club Gold. Here, it’s not just a discount. It’s status. And people respond to feeling important, elite. Still, even where the rewards themselves are concerned, Virgin is motivating loyalty customers with some pretty attractive offers. At the Club Red tier, members earn flight miles and receive discounts on rental cars, airport parking, hotels and holiday flights. But as members rise in tiers, they get even more. At the Club Silver tier, members earn 50 percent more points on flights, access to expedited check-in, and priority standby seating. And once they reach the top, Club Gold members receive double miles, priority boarding and access to exclusive clubhouses where they can get a drink or a massage before their flight. Now that’s some serious incentive to keep coming back for more. Discounts are still part of the equation – but they are designed with innovation and personal value in mind, elevating them to more than just savings.

Amazon Prime: Pay upfront and become a VIP.

What if your customers only had to pay a one-time upfront fee to get a year’s worth of substantial benefits? It may not sound like the smartest business idea at first glance. But take a closer look. Amazon Prime users pay a nominal $99 a year to gain free, two-day shipping on millions of products with no minimum purchase. And that’s just one benefit of going Prime. It’s true that Amazon loses $1-2 billion a year on Prime. This comes as no surprise given the incredible value the program offers. But get this: Amazon makes up for its losses in markedly higher transaction frequency. Specifically, Prime members spend an average of $1,500 a year on Amazon.com, compared with $625 spent by non-Prime users, a ccording to a 2015 report from Consumer Intelligence Research Partners.

Patagonia: Cater to customer values.

Sometimes, the draw for consumers isn’t saving money or getting a great deal. The eco-friendly outdoor clothing company Patagonia figured this out back in 2011, when it partnered with eBay to launch its Common Threads Initiative: a program that allows customers to resell their used Patagonia clothing via the company’s website. Why is this program important to customers? And how does it benefit Patagonia? The company’s brand embraces environmental and social responsibility, so it was only fitting that they create a platform for essentially recycling old clothing rather than merely throwing it away. The Common Threads Initiative helps Patagonia build a memorable brand and fierce loyalty by offering its customers a cause that aligns with deep personal values. OK, so their customers get to make a little money, too. Everybody wins.

American Airlines: Gamify your loyalty program.

If you’re going to offer your customers a loyalty program, why not make it f un? After all, engagement is key to building a strong relationship with your customer. And what better way to achieve that goal than making a game of it. American Airlines had this very thing in mind when it created its AAdvantage Passport Challenge following its merger with USAirways. The goal: find a new way to engage customers as big changes were underway. Using a custom Facebook application, American Airlines created a virtual passport to increase brand awareness while offering members a chance to earn bonus points. Customers earned these rewards through a variety of game-like activities, from answering trivia questions to tracking travel through a personalized dashboard. In the end, participants earned more than 70 percent more stamps than expected – and the airline saw a ROI of more than 500 percent. The takeaway: people like games.

Stand out from the crowd.

Your approach to your customer loyalty program should align with your overall marketing approach. Effective branding is about standing out, not blending it. Being memorable is key. To this end, keep in mind that loyalty programs are no longer a novelty. That means that yesterday’s strategies won’t work moving forward, so look for ways to rise above the noise, setting yourself apart from the cloying drone of countless other cookie-cutter programs.

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The Timelines They Are a-Changin': 7 Tips for Making the Most of the New Facebook Pages

Like it or not, it’s here: the new timeline for Facebook business Pages. And much like any of the wide-sweeping changes that Facebook has introduced in the past, the faster you can get acclimated, the sooner you can start using these new features to your advantage to engage more effectively with your customers. So without further ado, let’s dive right in, shall we?

1. Put your best foot forward.

The first thing that you – and your fans – will notice is the new cover photo. This is your very own Facebook billboard, your opportunity to grab new visitors and entice them to delve deeper into your Page. This is prime real estate, so make sure you use it well. A great photo can make a memorable first impression that helps you attract and keep potential customers; a bad one can turn them away before they ever interact with the rest of your content. Get creative with this space. Feature one truly stunning image that captures the essence of your brand. Showcase your products or services. Give fans a peek behind the scenes of your company. No matter your approach, just make sure you play by the rules: No mention of prices, sales or discounts. No contact information, such as your phone number or website address. And no calls to action, whether it’s to like your Page or buy your product. You’ll also notice that your profile photo persists in the new format. This spot is best used for your logo icon, as it will also be the thumbnail image that appears alongside your posts in your fans’ news feeds.

2. Deliver a call to action.

So Facebook says you can’t include a call to action in your cover photo. You’ll also discover that you can no longer set a default landing tab for your Page. What’s going to here? And what are you to do about it? Relax. You still have plenty of opportunity to capture attention and motivate your fans to take action. Just below your cover photo, you’ll see four featured app slots. Photos will always take the first slot on the left, but you can customize the other three to your liking. These slots are the perfect place to feature a promotional video, link to your company blog or even a store (or donation) app. Much like the cover photo, these app slots will get a lot of eyeballs, so make sure you design them well.

3. Tell your story.

Once you get past your cover photo and apps, you’re into the timeline itself. In some ways, the timeline isn’t so revolutionary. Your most recent update appears at the top and the rest follow in reverse chronological order as you move down the Page, just as they always have. On the right side of the Page, you’ll see the timeline represented in years, starting with the year that your business was established. Here’s where you can really start to have some fun with the new format. Add important events – the date your company was founded, the launch of a new product, awards you’ve won – as milestones in your timeline to create a sense of stepping back in time. The more visually engaging you can make these milestone posts, the better. There are also new ways to filter what’s shown on the Page: Highlights, Friend Activity, Posts by Page and Post by Others. The trickiest part of these new filters is that posts by your fans aren’t as visible. So if interaction with your fans is important to you (and it should be), then you’ll need to be very intentional about engaging with them.

4. Get visual.

Another difference that will quickly become apparent the more you study the new timeline format is that photos and videos are given much greater prominence than any other type of content. Jumping on the bandwagon that has made platforms like Pinterest and Instagram so popular, the timeline focuses on visual storytelling. This is actually a plus, since as we’ve covered previously, one great photo truly can do the work of a thousand words in conveying what it is that your brand stands for. Data from Facebook supports this theory as well, indicating that “posts including a photo album or picture can generate 2X more engagement than other post types.” Use this new format to your favor by posting photo- and video-based content as often as possible.

5. Stick to it.

In order to help extend the longevity of your content, you now have the ability to pin a post to the top of your Page (it will appear just below your status update compose box). While this won’t affect how your update appears in your fans’ news feeds, it will keep this story at the top of your own Page for up to seven days. Pinning a post to the top of your Page is a great way to call attention to a special event, marketing offer or other especially fantastic content. Alternatively, you can also highlight a story so that it spans all the way across both columns of your timeline, making it easier to find as a user scrolls down.

6. Keep an eye on your inbox.

Another major change being introduced in this latest iteration is that Pages now have the ability to receive direct messages from fans. While these messages can only be initiated by a fan, this new feature serves a very useful purpose. Fans can now use Facebook as a way to ask a question or discuss a customer service issue in depth without doing so in the public forum. It’s a win-win for both you and your customers. Just be sure to keep a close watch on your inbox and respond to any messages you receive in a very timely manner. After all, if someone has reached out to you, you want to make sure they feel that their effort is both appreciated and taken seriously.

7. Don’t over-think it.

Finally, even though these changes are significant, there’s no need to feel overwhelmed or intimidated. The fact of the matter is that the majority of your fans will continue to consume the content you’re publishing in the same way they always have: via their personal news feeds. So while a well-designed Page timeline is important – particularly when it comes to winning over new fans – it’s not necessarily going to reinvent the wheel of the interactions you have day in and day out with your existing fans. In an ideal world, they would reward all the time and effort you put into your timeline by congregating on your Page and interacting with it directly. In reality, that’s probably not going happen on a consistent basis. The best approach is to strike a balance between the two. Be innovative in trying out new ideas and approaches on your timeline, but keep the content of your daily posts steady and strong, since you never know just when or where someone will come across it. After all, just as with most things in life, the more things change on Facebook, the more they stay the same.

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Focus, Technology and Personalization: A Master Class in Branding from Apple’s Angela Ahrendts

Angela Ahrendts was recognized as a branding and marketing powerhouse well before Apple tapped her as their senior vice president of retail and online sales. Her eight-year track record at Burberry is very nearly legendary — and with good reason. When Ahrendts came to Burberry in 2006, growth at the venerable company had nearly come to a standstill, but within just a few years, she had re-established the brand as a force to be reckoned with in the luxury market. Through a combination of savvy use of technology and some hard-nosed business moves, she rebuilt the Burberry label brick-by-brick, and by the time she left for Apple, had nearly tripled the company’s annual revenue. And while your company’s marketing budget and resources surely are a drop in the bucket compared to Apple’s or Burberry’s, that doesn’t mean we can’t take a page from her syllabus and learn to how to emulate her innovative approach to branding building. So why don’t we all turn our attention to Professor Ahrendts, and let her teach us how to embrace the principles and practices that brought her phenomenal success at Burberry and got Apple’s attention.

Focus, focus, focus

When Ahrendts became CEO of Burberry, she inherited a brand in turmoil. The venerable 150-year old name was no longer synonymous with luxury; instead it had become the label of choice for British hooligans — so much, in fact, that some pubs refused to allow patrons inside if they were wearing Burberry. Outside the UK, the situation was even worse. Burberry had forged licensing agreements with more than a dozen international companies, and those companies were creating their own inferior products, then stamping them with the Burberry label. While Burberry was foundering, the luxury market as a whole was growing. Ahrendts found herself competing against well-established brands in a competitive market where her company had lost all advantage. Her response? Focus.

The brand

She began by finding what she refers to in interviews as her “white space” — the niche in the market that only Burberry could fill. And she found Burberry had two things that made it completely unique: it was British, and it had a history that spanned 150 years back to a single overcoat. These two features have been the touchstones guiding Burberry ever since in every piece of marketing, every fashion show and every story the brand has told — British models on the runway, British music on the website and in stores, and those classic trenchcoats always on prominent display.

The market

With a clear focus for the brand established, Ahrendts moved into market research to find the white space among consumers. Research told her something interesting – something that competing brands had either completely missed or ignored. The demographic group spending the most money on luxury consumer goods, especially in emerging markets, was the Millennial generation. So she landed upon the concept of “democratic luxury” as a way to bring the Burberry brand to a younger generation, avoiding the stuffy image many luxury brands promoted and making Burberry young, exciting and friendly.

The vision

Her final area of concern was all those licenses that were diluting the brand. Burberry bought back the licenses and established tight control over every single item that carried the Burberry label, from products to marketing campaigns. The new rule was simple: anything visible to the consumer passed through the hands of Chief Creative Officer Chris Bailey, the keeper of Burberry’s brand vision.

Digital first

Ahrendts has said that she views digital technology as a force for driving change rather than a marketing tool – a philosophy that is front and center in all of Burberry’s online outreach efforts. Take, for example, the Art of the Trench and the Burberry Kisses campaigns. Neither is designed as a direct-sell campaign but rather as a way to connect with, engage with and delight consumers. Then there’s Acoustic Burberry — a showcase of up-and-coming British musicians featured online and in Burberry stores. This integration of online and physical worlds is another of Ahrendts’ trademarks, and it’s embodied in Burberry’s flagship store, opened under her direction in 2012. Her stated goal was to make walking through a store exactly like browsing the Burberry website, and that goal is more than met. The store leverages cutting-edge technology to create a truly unique experience for customers. One great example is the use of chips embedded into selected products to activate interactive screens showcasing the story behind each item. Even runway shows blur the line between online and physical reality. Burberry now live-streams their fashion shows and allows online viewers to purchase items they see on the runway — well before they’re actually available in stores. It’s this seamless integration of worlds that has made the Burberry brand unique among its peers.

And always personal

Angela Ahrendts has also pioneered the use of technology to truly personalize the Burberry brand experience. In the stores, associates carry iPads with access to an international database of customers that provide purchase histories and personal preferences in order to allow them to provide their clients with a higher level of service. And online, customers are given the opportunity to customize items with nameplates and personalized technology. Orders placed online are even confirmed by a personal call from a Burberry rep.

Your takeaway

Angela Ahrendts has established herself as a branding genius — and Apple stands to benefit immeasurably under her guidance. Take her philosophy as an example, and reap some of the same benefits in your own market and on your own scale: Keep a clear focus on your brand story. Maintain control over your brand. Find your audience and learn to speak their language, which Ahrendts would say is digital. And discover ways to differentiate your product through presentation and personal service.

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